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Post by jeffolie on Oct 25, 2011 14:26:04 GMT -6
Greek Banks in deep trouble ... Run ... long lines The distrust results in " ... transferred abroad or hoard it at home ... " ========================================== Lines to Withdraw Deposits Queue Up as Run on the Banks starts in Greece With talk of 50% or 60% haircuts on Greek bonds, already mistrustful Greek citizens have queued up to pull deposits. Via Google Translate, The Bild reports Greeks Plunder their Accounts in Fear of Debt Cuts. Monday morning, 7.40 clock in the district of Athens, "Agia Paraskevi". We, the BILD reporters are witnesses, of a queue in front of a branch of the "National Bank of Greece" right after the opening at 8:00. "I come here to immediately pick up my pension € 300. Who knows what else happened today. My money is safe only when it is at home" said Pensioners Evagelos Dimitros age 73. The head of an Athens bank branch told BILD: "More and more Greeks who still have some money come to get it from the bank. In my office there are a total of 5,000 customers, 2,500 of which either have their money transferred abroad or hoard it at home. If this continues, there will soon be no more money." globaleconomicanalysis.blogspot.com/2011/10/lines-to-withdraw-deposits-queue-up-as.html
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Post by jacquelope on Oct 25, 2011 18:47:52 GMT -6
Alright. It has finally BEGUN. The riot police have no chance to stop this now.
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Post by unlawflcombatnt on Oct 25, 2011 19:52:14 GMT -6
More information on events leading up to this was reported in Friday's (Oct 21, 2011) Vancouver Sun: Europe and the IMF will only proceed with their planned second Greek bailout if banks accept a "haircut" of "at least 50 percent," diplomatic sources said Friday.
Even that would require an increase of 5 billion euros to the original 109 billion euros in planned eurozone and IMF loans, according to a report drawn up by international auditors discussed by eurozone ministers at Brussels talks.
Banks would need to take a 60-percent "haircut" on Greek debt to keep "official funding" at the level presently planned, the report seen by AFP concludes, with the "worst-case" scenario outlined by auditors envisaging 440 billion euros in future bailout funds.
That would see Greece unable to borrow on commercial money markets, given already unsustainable rates of interest, for decades.
The cost of the second bailout initially decided three months ago to the day, but which veered off course as Greece fell ever deeper into recession, would now rise to 114 billion, the ministers were told in Brussels.
An EU diplomatic source told AFP after their discussions broke up overnight that the conclusions drawn from the talks were that "a minimum of 50 percent Private-Sector Involvement is needed" to go ahead.
The source said that approval by the International Monetary Fund, and therefore EU, on plans aimed at containing contagion threatening the rest of the eurozone, and keeping Greece in the currency area long-term, "is only possible if there is clarity on the second programme," — that it crosses that 50-percent threshhold.
Another diplomatic source conceded that getting the second bailout back on track would now require movement both from eurozone partners and the banks.
Bailout partners, who gave their green light earlier on Friday to the release of 8 billion euros in blocked loans from the May 2010 first bailout for Greece worth 110 billion euros, pending agreement from the IMF, could still be required to offer "more concessional official sector financing terms," the conclusions said.
Working on the worst-case assumptions, "the time required to get back to market could be significant, generating a potential need for additional official financing ranging up to 440 billion euros."
"It must be noted that the estimated costs to the official sector exclude any contagion-related costs," auditors underlined.
Eurozone ministers said in a statement that "in order to ensure debt sustainability, we will conclude a second economic adjustment programme for Greece, with an appropriate combination of additional new official financing and private-sector involvement."
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